Spain’s Prime Minister Announces the Elimination of “Golden Visa” Program to Address Affordable Housing Crisis
Spain is set to terminate its “golden visa” scheme, which grants residency privileges to foreigners investing significantly in Spanish real estate. Prime Minister Pedro Sanchez made this announcement on Monday during a press conference. According to Sanchez, the move aims to transform access to affordable housing into a right rather than a speculative business.
The “golden visa” program permits non-EU citizens investing a minimum of 500,000 euros (approximately $541,250) without securing a mortgage in Spanish real estate to obtain a special permit allowing them to reside and work in the country for three years.
Sanchez explained that 94 out of every 100 visas granted under this program have been linked to real estate investments, primarily in cities grappling with a highly pressured housing market where finding suitable accommodations for local residents is almost an impossible task.
The Prime Minister mentioned that the government would initiate the process to discontinue the scheme during Tuesday’s weekly cabinet meeting, following the review of a report submitted by the Housing Ministry.
Since its inception in 2013, Spain has issued approximately 5,000 permits through this program, according to official data. Chinese and Russian investors have been the leading contributors, having invested over 3.4 billion euros collectively. However, a report by Transparency International in 2023 raised concerns regarding the investigation of the origins of these funds.
Despite this move, it is predicted that the property market would not be significantly affected, as less than 0.1% of the 4.5 million homes sold between 2013 and November 2022 were purchased under this program, according to property Website Idealista.
Idealista spokesperson Francisco Inareta stated that Spain’s housing crisis is not a direct result of the “golden visa” scheme but rather a lack of supply and an escalating demand. Inareta further criticized the announced measure as another misdiagnosis, stating that it focuses on international buyers without promoting the creation of new homes in the market.
Portugal, Spain’s neighboring country, recently revamped its own “golden visa” scheme and excluded real estate investment to address its housing crisis. Foreigners interested in securing residency rights can still invest their funds in other sectors.
The contact Commission has long advocated for the abolition of such programs due to potential security risks.
